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UBS City office on the block for £143.5m

Canadian real estate company Ivanhoé Cambridge has opted to sell a City of London development let to Swiss bank UBS for more than £143m, CoStar News can reveal.

Ivanhoé has instructed Cushman & Wakefield to sell the core freehold asset at 21 Lombard Street, EC3, for £143.5m, reflecting a net initial yield of 4.45%, or a capital value of £1,238 per sq ft.

Twenty-One Lombard Street is single let to UBS, which has carried out a refurbishment of the building, on a lease expiring 27 March 2026 without breaks. The 115,955 sq ft office property produces an annual rent of £6.5m per annum, or £56.06 per sq ft overall with an upward only rent review on 25 March 2021.

Ivanhoé Cambridge completed its purchase of 21 Lombard Street in 2015, agreeing terms to buy the asset after a deal to sell the building to Hyundai Fire & Marine Insurance fell away.